Exchange Rate Regimes and Equilibrium Exchange Rates in East Asia

Se-Eun Jeong and Jacques Mazier

Revue économique, 2003, vol. 54, issue 5, 1161-1182

Abstract: Estimation of equilibrium exchange rates is conducted for the three main Asian currencies (Japan, China, South Korea) with theoretical framework of Williamson [1994]. It highlights the problems of regional monetary cooperation that have gained momentum after the outbreak of the 1997-1998 financial crises in East Asia. The Chinese yuan became undervalued during the second part of the 1990s, which can explain its resistance faced with the Asian crisis. The yen became marked by contrast between a weak undervaluation against the dollar since 1998 and an overvaluation against the Chinese yuan since 1995 and Korean won since 1998. As for the Korean won, an overvaluation appeared before the Asian crisis, followed by an undervaluation compared to the dollar and yen. Persisting misalignments of these three currencies attest to the need for regional monetary cooperation. Estimated equilibrium exchange rates would be useful to set exchange rate parities at the launching of any new institutional arrangements (common basket peg policy, yen bloc, acu).

Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (75)

Downloads: (external link)
http://www.cairn.info/load_pdf.php?ID_ARTICLE=RECO_545_1161 (application/pdf)
http://www.cairn.info/revue-economique-2003-5-page-1161.htm (text/html)
free

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cai:recosp:reco_545_1161

Access Statistics for this article

More articles in Revue économique from Presses de Sciences-Po
Bibliographic data for series maintained by Jean-Baptiste de Vathaire ().